Swiss National Bank President Thomas Jordan confirmed that the central bank may need to continue its interest rate hiking agenda in order to limit the country’s inflation.
“The fight against inflation is not over yet — we need to make sure we bring it back below 2% in the long term,” Jordan told SonntagsZeitung in an interview. “At this point in time, we can’t exclude a further tightening of monetary policy.”
Since June 2022, the Swiss National Bank has raised borrowing costs by a total of 225 basis points. Now, the central bank is expected to raise interest rates once again on June 22.
Currently among the developed countries with the lowest interest rates, Switzerland’s central bank is looking to tighten its management of the inflation situation as it heads toward the top of the central bank’s target range.
Jordan explained that SNB has several important items on its agenda. This includes limiting the appreciation of the franc, reducing its balance sheet, and closely monitoring mortgages and the property market.